WAEC Accounting Past Questions & Answers - Page 223

1,111.

Carriage outwards is charged to

A.

Trading account

B.

Appropriation account

C.

Purchases account

D.

Profit and loss account

Correct answer is D

Carriage outwards refers to the seller's cost of delivering goods to the buyer. Carriage outwards is the expense of the seller when the terms of the sale are FOB destination. Under the accrual method of accounting, the cost of carriage outwards should be reported on the income statement as an operating expense in the same period as the sale of the goods.

It is charged with profit and loss account.

1,112.

Which of the following is correct about cost of goods sold?

A.

opening stock + purchases - closing stock

B.

opening stock + sales + closing stock

C.

openig stock - purchases - closing stock

D.

opening stock + sales + closing stock

Correct answer is A

No explanation has been provided for this answer.

1,113.

Carriage outwards is charged to

A.

Credited to the trading account

B.

Debited to the profit and loss account

C.

Credited to the profit and loss account

D.

Credited to the appropriation account

Correct answer is A

No explanation has been provided for this answer.

1,114.

The amount set aside out of profit for a specific purpose is

A.

provision

B.

reserve

C.

depreciation

D.

depletion

Correct answer is A

No explanation has been provided for this answer.

1,115.

Which of the following terms describes the provision made for the loss in the value of an asset that has a legal life span?

A.

capitalization

B.

depreciation

C.

depletion

D.

amortization

Correct answer is B

No explanation has been provided for this answer.